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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Asia Morning Sep 7

Article By: ,  Financial Analyst
September 6, 2020 9:45 PM

Asia Morning: US Stock Markets Extend Decline

On Friday, U.S. stocks closed lower again, though pared some early losses. The Dow Jones Industrial Average fell 159 points (-0.6%) to 28133, S&P 500 dropped 28 points (-0.8%) to 3426 and Nasdaq 100 lost 149 points (-1.3%) to 11622. Software & Services (-2.25%), Media (-2.23%) and Retailing (-1.8%) sectors led the decline.

Dow Jones Industrial Average daily chart:

Source: Gain Capital, TradingView

The VIX Index, a measure of expected volatility, marked a day high of 38.28 before ending 8.5% lower to 30.75. Approximately 64.2% of stocks in the S&P 500 Index were trading above their 200-day moving average and 51.9% were trading above their 20-day moving average.


Regarding U.S. economic data, non-farm payrolls increased 1.37 million in August (+1.35 million expected), while jobless rate dropped to 8.4% (9.8% expected) from 10.2% in July.

Today, U.S. stock markets are closed to observe the Labor Day.

European stocks were broadly lower. The Stoxx Europe 600 Index slid 1.3%, Germany's DAX 30 sank 1.7%, France's CAC 40 and U.K.'s FTSE 100 were down 0.9%.

The benchmark U.S. 10-year Treasury yield jumped to 0.7180% from 0.6347% Thursday, snapping a five-day decline.

WTI crude oil futures (October) plunged 3.8% to $39.77 a barrel. The total number of rotary rigs in the U.S. rose to 256 as of September 4 from 254 in the prior week, according to Baker Hughes.

Spot gold edged up 0.2% to $1,933 an ounce.
On the forex front, the ICE U.S. Dollar Index climbed 0.2% on day to 92.97, lifted by a solid non-farm payrolls report.

EUR/USD slipped 0.1% to 1.1838. Official data showed that German factory orders grew 2.8% on month in July (+5.0% expected). Later today, German industrial production for July will be released (+4.5% on month expected).

GBP/USD was little changed at 1.3276. The Markit U.K. Construction PMI slid to 54.6 in August (58.3 expected) from 58.1 in July.

USD/JPY gained 0.1% to 106.25.

USD/CAD dropped 0.5% to 1.3060. Government data showed that the Canadian economy added 245,800 jobs in August (+250,000 jobs expected), while jobless rate fell to 10.2% (as expected) from 10.9% in July.

Meanwhile, AUD/USD edged up 0.1% to 0.7282. Australia's retail sales grew 3.2% on month in July (+3.3% expected), according to the government.

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